With a new CEO at the helm, rideshare platform Lyft will cut at least 1,200 jobs as the firm strives to compete with larger rival Uber, The Wall Street Journal reported on Friday. 

That's a huge cut for a company with close to 4,000 employees, and comes on top of a 700-person layoff in November. A source familiar with Lyft's workforce plans said the cuts could hit more than 30% of the staff -- and help Lyft achieve a 50% cut in ongoing costs.  

Lyft stock, which traded at $80 after its 2019 IPO, closed Friday at just $10.44. While that was a 6% gain from Thursday, the shares are down about 10% on the year, while Uber is up 21%.  

In March, Lyft announced that board member David Risher would take over, with co-founders John Zimmer and Logan Green backing away from their daily management roles. This is Risher's first week in charge. 

After the Journal broke the story of the major pending layoff, Risher sent a note to employees, saying "we need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth.”

"Departing employees will receive at least 10 weeks of pay, with additional weeks for team members with 4+ years with Lyft," wrote Risher, along with "accelerated equity vesting for the May 20 vesting date." Health coverage will extend to Halloween.

He didn't outline the scope of the layoffs, but said more information would come next week. Ominously, all Lyft offices will be closed on Thursday April 27. The company will notify fired employees that day via emails sent at 8:30am Pacific time. “I own this decision, and understand that it comes at an enormous cost," said Risher.   

Uber's diversification into food and beverage deliver paid off big when the Covid-19 pandemic hit. As rideshare volumes fell precipitously, Uber cashed in on delivering to homebound victims of the lockdown regime. 

That's enabled Uber to squeeze Lyft on price. "On a per-mile basis, Lyft fares are about 31% higher compared with 2019 while Uber’s are 20% higher," reports Bloomberg, citing YipitData. Lyft has a 25% US market share, compared to 75% for Uber. 

“I think being a strong number two is a good place to be,” said Risher after his move to the CEO slot was announced. “I like where we are, but we’ve got real work to do to fight it out a little bit.” 

Also in March, Risher declared Lyft is not for sale -- promptly sinking the stock by 7%.